New insights into gas demand-supply-I: Affordability becomes the key issue now

Dec 06:
New studies are increasingly showing a gloomy picture for gas demand globally and in India. 8These studies are focused on the question of affordability of gas as a fuel and feedstock rather than as a substituting fuel for other kinds of dirtier fossil fuels.8Fresh insights seem to indicate that there are limited numbers of countries outside the OECD which can be expected to afford to pay wholesale (or import) prices of $6–8/MMbtu and above, which are needed to remunerate 2017 delivery costs of large volumes of gas from new pipeline gas or LNG projects.8The unspoken assumption that around the early-mid 2020s, gas prices will rise somewhere close to 2011–14 levels, allowing a return to profitability for LNG projects which have come on stream since the mid-2010s, coaxing new projects to move forward, may not turn out to be true. Click on Reports for more